Suncorp Group is believed to be considering the sale of Capital SMART according to the Street Talk column in the Financial Review.
Street Talk, who also broke the story about the AMA/Blackstone deal, understands Suncorp has hired adviser Luminis Partners to review and test buyer interest in Capital SMART.
It is understood private equity and strategic investors have been told the business has $300 million revenue and about $30 million EBITDA. The Capital SMART review comes as Suncorp chief executive Michael Cameron cleans up the company's portfolio. He recently signed a $725 million deal to sell the company's life insurance business to TAL Dai-ichi Life Australia Ltd.
According to Street Talk's sources Suncorp is seeking a new capital partner for Capital SMART Repairs who could buy its 95 per cent stake and join founder and minority shareholder Jim Vais on the share register.
Suncorp's recent annual results report stated that 45 per cent of its personal insurance motor repairs made their way to Capital SMART last financial year.
Capital SMART Repairs had $290 million revenue in the year to June 30 last year, according to its most recent accounts filed with the corporate regulator, which was up from $243 million in 2016. Operating profit was $20.4 million in 2017 financial year, while it made $14.1 million net profit and had assets worth $61.6 million.
Capital SMART Repairs has an estimated 4.3 per cent of the market. The article went on to talk about the recently failed AMA/Blackstone deal in June and say that 'other major players' include Sheen Panel Service (25 sites) and SmashCare (10 sites), according to Bell Potter analysts. The private equity firms, including Blackstone, are known to consider the industry as ripe for consolidation.